The council is in talks with rival developers Stanhope and Schroder's and Arrowcroft in an effort to break the deadlock over the Croydon Gateway site.

Stanhope and Schroder's, which owns the 12-acre site next to East Croydon station, submitted new plans to redevelop the land which include an urban park twice the size of Trafalgar Square to Croydon Council last month.

But the council has consistently stated its preference to have rival developers Arrowcroft build a 12,500-seat arena on the vacant site.

And the authority has also threatened to use compulsory purchase orders to acquire the land and build the arena, a process Stanhope and Schroder's has pledged to fight.

A council spokesman told the Guardian they were hoping to reach a mutually satisfactory conclusion with Stanhope and Schroder's while it considers the developer's new application.